Nairobi — Kenya and Africa are projected to remain at the forefront of resilience and innovation in 2025, driven by strategic investments, sector diversification, and sound fiscal policies, according to Standard Chartered Bank’s 2025 Global Market Outlook.
Despite a projected global economic slowdown from 3.2% in 2024 to 3.1% in 2025, Kenya’s economy is expected to weather these challenges.
Paul Njoki, Standard Chartered’s Head of Wealth and Affluent Banking, emphasized Kenya’s leadership in economic transformation across the continent, supported by innovation and fiscal discipline.
“Kenya’s commitment to innovation and investment in wealth continues to create a resilient foundation for growth. As we navigate a complex global environment, Standard Chartered is dedicated to supporting clients in achieving their financial goals,” Njoki said.
However, Kenya’s fiscal health presents significant challenges. The International Monetary Fund (IMF) program concludes in April 2025, leaving the country to address fiscal consolidation pressures.
With a debt-to-GDP ratio at 72.4%, the Institute of Public Finance (IPF) has flagged Kenya as being at high risk of debt distress, having surpassed IMF thresholds for debt sustainability.
The Treasury remains optimistic, forecasting a GDP growth of 5.3% in 2025.
Nonetheless, the IPF urges the government to curb spending, which is expected to rise by over Sh1 trillion from 2023 to 2026, to address fiscal risks.
Kenya’s resilience and innovative policies are likely to keep it on a path of economic transformation, even as it tackles fiscal challenges head-on.
